IRS Warns of Tax Return Scam

The IRS has issued a tax fraud alert to warn consumers about a new tax return scam. Fraudsters are filing tax returns using victims’ information. The victims receive the erroneous refund (before filing their actual taxes) either by check or direct deposit. The scammer poses as an IRS agent or a debt collector and contacts the victims claiming they received a fake refund and they must send the funds back to the “IRS”. In some versions of the scam, the taxpayers who receive the erroneous refund get an automated call with a recorded voice saying he is from the IRS and threatens the victims with criminal fraud charges, an arrest warrant and a “blacklisting” of their Social Security Number. The recorded voice gives the victims a case number and a telephone number to call to return the refund. When the victims send the funds back, they don’t send them back to the IRS, but to the scammer.

This scam has already impacted tens of thousands of people, and can have a devastating impact on victims, including identity theft, financial loss and a sense of violation. It’s extremely important to stay vigilant against these scams, and be extra careful in keeping your personal information safe and secure.

If you receive a suspicious direct deposit, you can protect yourself by doing the following:

Contact Jeanne D’Arc Credit Union at 978-452-5001 or visit a branch immediately. We will send the funds back to the IRS.

Call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) to explain why the direct deposit is being returned.

Submit the check immediately to the appropriate IRS location listed below.* The location is based on the city (possibly abbreviated) on the bottom text line in front of the words TAX REFUND on your refund check.

Don’t staple, bend or paper clip the check.

Include a note stating, “Return of erroneous refund check because (and give a brief explanation of the reason for returning the refund check).”

If you no longer have access to a copy of the check, call the IRS toll-free at 800-829-1040 (individual) or 800-829-4933 (business) and explain to the IRS assistor that you need information to repay a cashed refund check.

Write on the check/money order: Payment of Erroneous Refund, the tax period for which the refund was issued, and your taxpayer identification number (social security number, employer identification number, or individual taxpayer identification number).

Include a brief explanation of the reason for returning the refund.

Repaying an erroneous refund in this manner may result in interest due the IRS.

* For your fake paper refund check, here are the IRS mailing addresses to use based on the city (possibly abbreviated). These cities are located on the check’s bottom text line in front of the words TAX REFUND:

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